Home Depot Profit for the second quarter of 2019

Home Depot Tuesday announced a turnover below analysts' expectations and a decline in its business outlook for the year, fearing that the trade war will slow down consumer spending.

"Today, we are updating our sales forecasts to take into account the continued decline in the price of lumber, as well as the potential consequences for US consumers of recently announced prices," said Craig. Menear in his prepared remarks.

Its shares rose by less than 1% in pre-market trading after the new one.

Here's what Home Depot released for the second quarter of fiscal year 2019 compared to what analysts were expecting from Refinitiv data:

• Adjusted earnings per share: $ 3.17 vs. $ 3.08 expected
• Revenue: 30.84 billion USD vs. 30.99 billion USD expected
• Same store sales: 3% versus expected growth of 3.5%

Net income for the quarter ended Aug. 4 was $ 3.48 billion, or $ 3.17 per share, compared with $ 3.51 billion, or $ 3.05 per share, a year ago. That exceeded expectations for a profit of $ 3.08 per share, based on Refinitiv data.

Sales rose 1.2% to $ 30.84 billion from $ 30.46 billion a year ago, below expectations of $ 30.99 billion.

Sales at Home Depot stores that have been open for at least 12 months have increased overall by 3% and 3.1% in the United States, below expectations of 3.5% growth.

Home Depot said the average number of tickets purchased increased 1.7 percent in the quarter, from $ 66.20 to $ 67.31 in one year. Sales per square foot increased 1.1% from $ 504.20 to $ 509.55 in fiscal 2018.

Home Depot is now asking that sales for fiscal year 2019 increase by approximately 2.3% and those of comparable stores by approximately 4%. Previously, it had expected total sales growth of 3.3% and comparable sales of 5%.

Earnings per share are still expected to increase by about 3.1% to $ 10.03.

"We are encouraged by the momentum resulting from our strategic investments and believe that the current health of the US consumer and a stable housing environment continue to support our business," said Menear.

Home Depot struggled earlier this year with a rainy start to the year, preventing more home improvement customers from getting stuck indoors and curbing sales. Analysts are worried that Home Depot, as well as rival Lowe, will lose momentum in a housing environment that seems more difficult.

"Existing home sales are still choppy, house price increases are slowing, and home renovation / repair activities are expected to shrink in the second half of 2019 and 2020," said Chuck Grom. analyst Gordon Haskett, in a note to customers before Tuesday's report, when he lowered his store sales estimates for the Atlanta-based chain. This is associated with an "unstable" geopolitical context, said Grom, who continues to weigh on retail stocks more broadly.

Home Depot shares, valued at $ 228.8 billion, grew more than 21% this year. Lowe's shares, valued at $ 74.5 billion, grew by about 3%.